Value of supply chain contingency highlighted by severe shipping delays
The MOL Comfort container vessel last week suffered a catastrophic structural failure 200 nautical miles off the coast of Yemen, which eventually saw the ship snap in two. The crew of 26 were rescued safely, but the two halves remain afloat and have lost an as yet unspecified number of the 4382 containers on board. The incident highlights the risks associated for automotive companies as they globalise production to achieve cost efficiencies.
“We have been in contact with a number of high profile OEMs that have containers onboard the MOL vessel, and have been working to establish not only what they may have lost, but what their suppliers also had on board,” says Evolution Time Critical managing director, Brad Brennan. “This is where knowledge and transparency of your supply chain is vital, to avoid unnecessary delays where possible and put into action a contingency plan if suppliers are also facing difficulties.”
The containership was travelling between Singapore and Jeddah, Saudi Arabia, when the breakage occurred and had originally begun its voyage in Japan. Emergency logistics specialists Evolution Time Critical is also aware of tier 1 suppliers affected by the disruption. The full extent of potential damages and losses cannot be calculated until the ship is recovered. The weather in the area has remained adverse, and tugboats were due to arrive at the scene on Monday 24 June.
“As the automotive industry adopts a more dynamic manufacturing footprint a greater strain is placed upon the supply chain,” says Brennan. “Mitigating supply chain risk is a major focus for companies, and the MOL incident shows why many businesses which operate on a global scale are reducing the proximity of manufacturing and their customers.”
